In episode 320 of the Community Broadband Bits Podcast, aired on August 28th, we shared news about an opportunity regarding funding local Internet network infrastructure. Jase Wilson and Lindsey Brannon of Neighborly announced that the online investment platform had recently launched the Neighborly Community Broadband Accelerator. Applications to participate in the program close on September 28th, so we want to encourage local communities, Internet Service Providers, or community advocates interested in new ways to develop better local connectivity to check out the program.

More Than Money

For a quick recap, Neighborly is a technology company that provides an online investment platform to give individuals and entities the ability to invest in projects funded with municipal bonds. The projects are publicly owned and centered on improving the quality of life on the local level. Project areas include transportation infrastructure, schools and libraries, housing, and utilities. The accelerator program specifically aims to help local communities develop their own open access municipal networks to improve connectivity and encourage competition for broadband on the local level.

As Jase and Lindsey described in our interview, the numerous moving pieces associated with developing a fiber optic municipal network create a layered and complex project; a key element is financing. While it’s often left as a later consideration — one that makes or breaks the project — chances of success improve when community leaders address funding early and throughout projects development. 

One of the goals of the Accelerator Program is to help local communities interweave funding throughout the process. The program also provides additional resources throughout the process to help ease broadband network development. Applicants accepted to the program pay no fee and receive:

What started as a pilot project back in 2014 has consistently expanded to more addresses. Now the “Little Gig City” has put a date on when they expect to complete the final phase of their community-wide fiber network — early 2020. “Right now we feel like we’re kind of in the home stretch,” says Erwin Utilities fiber optic engineer John Williams. 

When The Time Was Right

The small town of Erwin, Tennessee first explored the possibility of bringing Fiber-to-the-Home (FTTH) to its residents in 1999. At the time, however, the community chose not to pursue a publicly owned network because only 20 percent of homes in the area had a computer and the initial estimated cost of over $20 million was too high for local palates. The market changed over the next few years and in 2012, the town finally felt it was time to invest. They constructed a fiber backbone that connected 45 SCADA locations and six county schools. By 2014, the city announced plans to develop a pilot project for business and residential connectivity in the downtown area.

The pilot project reached approximately 1,000 premises; the utility’s goal was to achieve a 25 percent take rate to ensure the service would be self-sustaining. According to Williams, the utility swiftly surpassed their goal and are now at 36 percent subscribership in the original deployment area. Erwin Utilities has expanded, passing a total of approximately 5,000 premises out of 9,000 total potential premises, which are also electric service customers.

Because Tennessee municipal utilities are subject to state law that limits their Internet service area to their electric service footprint, Erwin can only provide connectivity to a limited number of premises. The law creates a situation that protects incumbent monopolies, but forces rural folks who obtain electric service from a different provider to rely on ISPs that generally offer poor Internet access options via DSL or expensive satellite service.

The Ultimate in Self-Reliance

FiberNET, the municipal fiber network serving Morristown, Tennessee, has been serving the community since 2006 with fast, affordable, reliable Fiber-to-the-Home service. FiberNET is one of those networks that quietly went about its business bringing top notch services for residents, businesses, and institutions without a lot of fanfare. If you don’t live or work in the area or follow developments in broadband policy and implementation, you may not be familiar with Morristown’s FiberNET.

Now is your chance to learn more.

The community has produced a short, high-quality film about the network and the many ways it enhances living in Morristown for residents, businesses, and local entities. Business leaders describe how the network has enhanced and advanced their operations. Jody Wigington, who we’ve hosted on the Community Broadband Bits podcast, describes how the schools and local institutions have access to a network to rival any connections available in urban areas.

What’s the best part, in his opinion?

“We’re not-for-profit and locally owned. So FiberNET was built for the people through the vision of community leaders. And remember, FiberNET provides local jobs for the community and our employees are are part of the fabric of life in the Lakeway Region.”

Check it out:

Ocala, Florida, is one of those communities that doesn’t think twice about offering high-quality Internet access to businesses and residents. They’ve been doing it for decades and, when media coverage around gigabit connectivity began to expand, they were a little surprised because they had been offering similar services since the early 2000s. The benefits were nothing new to Ocala.

A Familiar Story Taken to Its Logical Conclusion

We touched based with Arnie Hersch, Senior Broadband Engineer for the City of Ocala, who shared the story of the network. Arnie has spent more time working on the network than anyone else in Ocala.

As in many other communities, Ocala started deploying fiber between its municipal utility facilities, including electric substations and water and wastewater locations, to improve inter-facility communications. In 1995, copper connected the city’s substations for SCADA operations. The copper was aged and had been struck by lightning, which negatively impacted its ability to perform; decision makers at the utility decided to replace the copper with fiber optic lines. As they finished deploying that year, Arnie joined the city's telecommunications utility; one of his primary objective was making the most out of the new fiber network.

First, Ocala connected all of its 52 municipal facilities in order to improve connectivity and cut costs. At the time, city offices still used dial-up connections for Internet access. Within two years, Arnie had switched the city to an Asynchronous Transfer Mode (ATM), which allowed them to use the new infrastructure for computing and voice applications. The change opened new doors for the city.

In May of 2017 we congratulated Chattanooga’s EPB Fiber for exceeding 90,000 subscribers and contributing to lower power rates for all (Electric Power Board) EPB customers. Now less than a year later, there is more to celebrate as EPB expects to reach 100,000 subscribers by Fall 2018 and is still lowering electricity costs for all customers. 

The city-owned electric utility launched its citywide fiber optic network in 2009 and never looked back. The original plan issued nearly a quarter of a billion dollars in debt for the utility and had an estimated forecast for only 35,000 subscribers. The city is now reaping the rewards from its investment; the utility paid off the last of its debt earlier this year, and now projected revenues for the fiscal year 2018-2019 from the telecom division sit at $169.1 million.

For a detailed, interesting history on EPB Fiber Optics, take some time to listen to Harold DePriest talk with Christopher in episode 230 of the Community Broadband Bits podcast. Before retiring, Harold was the tip of the spear in bringing the network to Chattanooga.

Major Savings

While EPB has long been recognized for its lightning fast Internet speeds and has repeatedly been ranked among the fastest in the U.S. (including this year’s fourth fastest ISP in the United States), the utility’s fiber optic lines also help lower power rates for all customers by eight percent. Whether Chattanoogans subscribe to EPB Fiber for Internet access or not, they still benefit from the infrastructure.

The City of Sanford, Maine, is putting the final pieces of funding in place to move forward with its ambitious 45-mile fiber optic build, SandfordNet, the largest fiber infrastructure build proposed in Maine to date. 

Along with two other funding sources, the project will be financed by an existing Tax Increment Financing (TIF) district in downtown Sanford. According to the Journal Tribune, the project will cost $2.02 million in total to complete; that figure is higher than initially projected, due in part to fees to access utility poles. 

The SanfordNet project involves building what the city describes as a “fourth redundant ring” that will attach to the statewide fiber loop known as the “Three Ring Binder.” Sanford’s building out the 45 miles of fiber and then connecting it to the Binder, which is about nine miles beyond city limits. The fiber will connect nearly 90 Community Anchor Institutions (CAIs), such as libraries and hospitals, to the infrastructure that will offer 10 Gigabit per second symmetrical upload and download capacity. The city is utilizing an open access model, leasing out its fiber to ISPs in a non-discriminatory approach that promotes competition.

GWI of Biddeford, Maine, will operate the network for Sanford and intends to offer Fiber-to-the-Home (FTTH) to residential premises along the fiber route in areas where there's sufficient demand. The open access model will create the opportunity for competition, creating better rates and better services for Mainers in the region. For more on what has become known as the "Maine Model," check out Christopher's conversation with GWI's CEO Fletcher Kittredge, episode 214 of the Community Broadband Bits podcast.

Where the Project Stands

On June 18th, PCMag came out with its list of “The Fastest ISPs of 2018.” The analysis looks at ISP performance in several different ways and provides a range of different side-by-side comparisons. The results prove that publicly owned infrastructure has in important role in bringing high-quality Internet access to Americans.

The Dakotas' Co-ops Rock

When taking a wide angle lens view of the fastest U.S. states results, we noticed that two of the top four states with the fastest ISPs were North Dakota and South Dakota. Rural cooperatives in these two states have excelled at deploying high-quality Internet access via fiber optic infrastructure. As a result, North Dakota and South Dakota have some of the most complete coverage of Fiber-to-the-Home (FTTH) Internet access and gigabit FTTH in the country. Notice all the coverage on our cooperative map:

Check out a larger map here.

Like rural electrification in the 1930s, cooperatives are taking on the task of bringing high-speed Internet service to members in rural areas. They live and work in the areas they serve. Big ISPs don’t consider sparsely populated areas suitable investment opportunities, so electric and telephone co-ops are repeating the approach of the 1930s, but this time with fiber networks. Dickey Rural Telephone Cooperative in North Dakota and Venture Communications Cooperative in South Dakota are only a few that have worked to get their members connected.

Hillsboro, Oregon, has studied the possibility of investing in high-quality fiber connectivity for residents and businesses since 2014. After considering the pros and cons, this northwest city of 105,000 has decided to move ahead, with spring 2019 as a target launch date of its own Internet access service.

Communications Utility and Beyond

In January, the City Council approved establishing a communications utility, creating a communications fund, and taking the necessary steps to develop a dig once policy in the city’s code. Elected officials had not yet decided if the community would pursue a city-wide network, but wanted to create an environment that would offer future options and encourage private sector partners to invest in Hillsboro.

The city already owns fiber optic resources that it uses for municipal facilities, schools, traffic signals, and other purposes. They plan to use that network as a foundation to expand in order to bring better connectivity throughout the community. With a wider network, Hillsboro hopes to adopt public Wi-Fi, better public safety notifications, and applications for smart-meters for utility services as well as real-time parking and traffic updates.

Keeping it Affordable for All Segments

Hillsboro plans to offer gigabit connectivity at around $50 per month but hopes to provide the same symmetrical service to lower-income households at a lower rate. In addition to equitable access for all income levels in Hillsboro, the city wants to ensure that students have the ability to compete.

“For our students, for our businesses, and for our entire community, we are moving forward now to expand the City’s fiber network to include Internet service,” said Hillsboro Mayor Steve Callaway. “We want to ensure affordable, equitable high-speed access to keep Hillsboro competitive with cities around the world."

The city wants to ensure that network neutrality protections remain in effect in the community for individuals and businesses. Encouraging entrepreneurs and making high-quality access with good customer service affordable for all subscribers are more goals they intend to pursue.

Incremental